Safaricom Sacco raises Sh500m from share sale

Safaricom Sacco has raised Sh500 million from sale of shares as it hopes to spread wings into real estate.

The exercise, which begun in September last year will see the 9000-member Sacco raise Sh1 billion to fund projects among them a 15-storey office complex in Nairobi’s Westlands area. Initially scheduled to conclude by September 2016, the Sacco CEO George Ochiri said the process will be fast-tracked to ensure that the target is met by July this year.

Speaking during the launch of a partnership with Tuskys supermarket that will allow members of the sacco to shop on credit at the retailer’s outlets, Ochiri said the arrangement will help members furnish their homes at relatively cheap credit terms. “Under the partnership, members will be allowed to acquire items at 1 per cent interest rate effective after 30 days of purchase from any of the 53 Tuskys stores countrywide,” said Ochiri.

Tuskys CEO Dan Githua said the three-year partnership, which could be extended depending on the performance, affirms the retailer’s efforts to add value to customers through partnerships. “This is part of Tuskys’ expansion strategy that focuses on deepening partnerships with corporates to drive business growth,” said Githua.

For the maximum 12 months within which the customer should pay for the items, the effective interest rate will be 7 per cent. A member wishing to buy items such as furniture and electronics will be issued with a Local Purchase Order from the sacco and present it to the retailer. The items will then be released to the customer within two days and the Sacco billed within a month.